Recurring FedNow Payments

To facilitate recurring FedNow payments for subscriptions with "Standing Approvals" without subsequent manual sending of e-invoices via Real-time Payments services for either payers or payees, an automated process is essential. Here's how it could work:

Initial Setup:

1. Subscription Configuration: Payees (service providers) set up subscription plans detailing payment frequency, amount, start date, and duration (if applicable) within their Real-time Payments service provider platform.
2. Standing Approval Authorization: Payers (subscribers) provide initial authorization for recurring payments, granting consent to participate in the subscription service. This could be a one-time setup process where payers authorize recurring payments for a specific subscription.

Automated Recurring Payments:

1. Automated Payment Initiation: Real-time Payments service provider automatically initiates recurring payments based on the established subscription plans and payer authorizations. Payments are triggered at predefined intervals without manual intervention.
2. Funds Transfer: Real-time Payments service facilitates instant funds transfer from the payer's account to the payee's account for each scheduled payment, ensuring immediate and efficient payment processing.

Invoice Generation and Management:

1. Automatic Invoice Creation: Real-time Payments service generates e-invoices for each scheduled payment based on the subscription details and payment schedule configured by the payee. This is done automatically without requiring manual intervention.
2. Invoice Delivery: E-invoices are delivered to payers electronically via email, text message, or through an online portal provided by the Real-time Payments service. Payees do not need to manually send invoices to payers.

Payment Tracking and Reconciliation:

1. Payment Confirmation: Payees receive automated confirmation of payment receipt for each invoice processed through the Real-time Payments service. This provides transparency and acknowledgment of payment completion.
2. Payment Reconciliation: The Real-time Payments service automatically reconciles payments received with corresponding invoices, ensuring accurate financial records and minimizing manual reconciliation efforts for payees.

Benefits:

1. Efficiency: Automation streamlines the subscription payment process, reducing manual intervention and administrative overhead for both payers and payees.
2. Convenience: Payers benefit from automated invoice receipt and payment processing, while payees enjoy seamless invoice generation and payment reconciliation.
3. Accuracy: Automated processes minimize errors associated with manual data entry and processing, ensuring accurate financial records and compliance with subscription terms.
4. Timeliness: Instant funds transfer ensures timely payment processing, enhancing cash flow management for payees and providing convenience for payers.

By leveraging Real-time Payments services for recurring FedNow payments, both payers and payees can experience a seamless subscription payment experience without the need for manual e-invoice sending or processing. This enhances efficiency, accuracy, and convenience for all parties involved.